The Crown Estate has announced the completion of the £100m Gateway redevelopment, the first major project to be delivered as part of their £500 million investment plan for St James's in London's West End.
The scheme is also the first they have delivered in partnership with a major international investor, working with Healthcare of Ontario Pension Plan (HOOPP) in a 50:50 joint venture to fund the redevelopment.
The Eric Parry Architects designed building delivers 5,300 m2 (57,000 ft2) office space, 2,600 m2 (28,000 ft2) retail space and 1,670 m2 (18,000 ft2) residential space to St James's, with a number of pre-lets already signed. Office and retail occupiers already signed up include Haymarket Financial, which will occupy the entire top floor, and Tiger of Sweden, set to open its flagship London store on Piccadilly. The scheme also makes an important contribution to St James's public realm through the transformation of Eagle Place and by introducing inspiring public art from Richard Deacon, Turner Prize winner, and Stephen Cox, to enliven the area for the benefit or residents, workers and visitors.
Paul Clark, Director of Investment and Asset Management said: "The successful completion of Gateway is a clear signal that we are delivering, both on our ambitious strategy for St James's and as an expert manager of third party capital. As well as providing world class commercial and residential space on one of the world's most prominent thoroughfares, Gateway is symbolic as the start of a ten year vision that will see us retain St James's essential character whilst redefining the area as a new destination in the heart of London."
Michael Catford, Vice President, Real Estate at HOOPP, observed how pleased HOOPP was with the project and its successful execution. "This co-venture with The Crown Estate is an important milestone for the pension plan as it grows the non-domestic component of its substantial real estate portfolio."
The Crown Estate's strategy for St James's is formulated around a defined investment plan which aims to sensitively regenerate the area, protecting its refined character, whilst at the same time providing the world class office, retail and residential space that will ensure the area's success for the long term.
The partnership on St James's Gateway with HOOPP, agreed in 2010, was the first major partnership The Crown Estate established and was followed shortly after by an agreement which saw NBIM (Norges Bank Investment Management) secure a 25 per cent stake in Regent Street in 2011. They have established this partnership model to provide additional working capital for investment in the core holdings, where it benefits from critical mass and specialist expertise. These sectors include: London's West End, dominant regional retail schemes, offshore renewable energy and strategic rural land.
With Gateway complete, The Crown Estate's focus will now move to the next major joint venture project, St James's Market, a £320m redevelopment which they announced recently to be delivered in partnership with Canadian investors, Oxford Properties.
The development managers for the project were Stanhope and the main contractors were Lend Lease.
Source: Crown Estate 13. June 2013